ONE EGG Scan for May 13th

Test lower at the open and bonds rattle the stock market. The rate of change in yields has been too much in too short a period. That stalled on Tuesday and stocks bounced after the open. Watching for follow through in the bounce this morning. Some rotation in play along with tests. Looking for the leaders to arise if the next leg higher is to materialize. We head into the day with the futures pointing modestly higher… how it unfolds early will be of interest.

Scatter charts of the S&P 500 index off the March 11th low show nine of the ten sectors actually lagging the index… that is a lack of direction at its best.

Result for the Daily EGG Scan: 

Leadership results the scan list produced for today…

  • UGAZ – makes move to confirm the trailing trend on Tuesday.
  • TMV – Rally continues as yields climb higher. Midday stall to watch today.
  • ERY – rally on energy selling lower Monday. Confusion on direction. Sold later in day… rally swith to ERX? Watching today.
  • UWTI – bounce in crude late is on the watch list for near term move higher.
  • EWU – UK breaking higher on election results. Tested Tuesday.
  • USLV – Silver made move… look for downtrend line break back to upside.
  • NUGT – gold miners of interest on the break back to the upside through resistance short term.

Moves of interest trailing ten days:

  • UGAZ – Natural gas breaking from the trading range and setting up opportunity short term. Entry $2.55
  • TMV – short treasury bonds accelerating. (TESTING?)
  • GDXJ – base trading range breakout $25. (TESTING???) Yes… nice bounce on Tuesday… follow through?
  • SIL – trading range ready to break higher?
  • SRS – short REITs climbing again on rates. (TESTING?) rates flattened out.
  • BRZU – testing breakout at $7.75. Need follow through upside.
  • DBB – base metals continued leading higher. (TESTING??? ) bounced on Tuesday and watching how it unfolds.
  • RUSL – uptrend still in play, big test higher… watching. Nice move Tuesday.
  • EWO – uptrend remains in play…

Possible EGG Position:

Nerves back in play to start the week? Futures are higher… time to breakout? Watching to see how this one unfolds. Got the follow through on UGAZ with gap higher. It is of interest for the trade setup ($2.50 entry on test or $2.60). GDX, RUSL, UWTI all of interest as well. Remember the markets are choppy and the direction uncertain at this point. This means more room on the stops which increases the risk. Thus, we will be patient with our entry and stops.